Travel operator TUI has announced the long-awaited merger of its German and British businesses.
The deal, which has been 18 months in the making, will see shareholders in TUI Travel end up with 46 per cent of the merged business which will have its main listing on the London Stock Exchange.
Peter Long, the British travel-industry veteran who brought First Choice together with TUI’s UK business back in 2007, becomes joint chief executive alongside TUI AG’s Friedrich Joussen who will take sole control in 2016.
TUI increased the scale of savings it expects to make from €80 million (£63.5 million) a year to €100 million. This includes €45 million from streamlining the business and removing the extra share listing and a reduction in the corporation tax rate from 31 per cent to 24 per cent.
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Long said: “Friedrich Joussen and I are committed to working closely to ensure that we achieve significant synergies, cost savings, commercial benefits and long-term growth as the world’s No. 1 integrated leisure tourism business.”
TUI Travel shares rose 2 per cent and TUI AG by 1.4 per cent.Reuse content